Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Compensation topic
No spam. Unsubscribe anytime.
Highland Village council weighs 2% COLA, hiring freeze and program cuts to balance FY2026–27 budget
Summary
At a July 21 work session the Highland Village City Council continued work on the FY2026–27 general fund budget, directing staff to model a 2% cost‑of‑living increase plus market adjustments while keeping three vacant positions frozen and asking for a five‑year forecast before final adoption.
The Highland Village City Council on July 21 continued a work session focused on closing a projected gap in the FY2026–27 general fund budget, giving staff guidance to model a 2% cost‑of‑living adjustment (COLA) with market adjustments and to keep three vacant positions in a hiring freeze for now.
Staff member Heather (speaker 2) walked council through the updated budget slides and said the package had increased roughly $25,000 since the prior meeting after reclassifying a police equipment request to special revenue. She told the council the proposed tax rate remains 0.53370 and that Denton County will certify appraisal rolls the coming Friday, which could affect final revenue numbers.
The central tradeoff discussed was whether to continue the city’s multi‑year effort to remain ‘‘mid‑market’’ on pay, especially for public‑safety command staff, or pause market adjustments temporarily to protect services. Heather cited the 2% COLA total of about $233,392.60; staff also distributed figures showing most market adjustments in this packet affect police and fire positions.
Multiple council members argued both sides. One councilor said the city should protect employees and retain public‑safety staff; another said the city routinely spends to chase mid‑market and might pause adjustments for short‑term savings. Staff noted prior compensation studies and that mid‑market policy has been discussed and adjusted over several years.
Council directed staff to return with a formal five‑year forecast that incorporates tonight’s guidance — including the 2% COLA, any adopted market adjustments, and the decision items/supplementals the council prioritized — and to preserve flexibility by leaving the three vacant positions frozen rather than permanently eliminating them.
The meeting produced direction, not formal votes: staff will produce updated scenarios and a supplemental decision sheet for the council’s next meeting so members can consider final adoption in September.
The council also discussed several operational and capital tradeoffs — from deferring some IT capital to scaling back community events — and asked for clearer cost and fund‑balance impacts before a final budget is adopted.
